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Citic Telecom International Holdings (STU:B7O) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Citic Telecom International Holdings ROA % Related Terms
Citic Telecom International Holdings ROA % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Telecom Services subindustry, Citic Telecom International Holdings's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Citic Telecom International Holdings ROA % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Citic Telecom International Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Citic Telecom International Holdings's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Citic Telecom International Holdings (STU:B7O) has a ROA % of 5.40% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Citic Telecom International Holdings and its competitors. This is near median its historical median of 5.43. Over the past decade, Citic Telecom International Holdings' ROA % has ranged from 4.79 to 6.93. According to the industry distribution chart, Citic Telecom International Holdings ranks #118 out of 368 companies in the Telecommunication Services industry, placing it in the top 32.1%.
Is Citic Telecom International Holdings' ROA % too high?
Citic Telecom International Holdings' current ROA % of 5.40% is near median its 10-year median of 5.43. Over the past 10 years, this metric has ranged from a low of 4.79 to a high of 6.93. The Telecommunication Services industry median ROA % is 2.79. Citic Telecom International Holdings' value of 5.40% is 93.9% above this industry median. Based on the distribution chart, Citic Telecom International Holdings ranks #118 out of 368 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Citic Telecom International Holdings has a GF Score™ of 56/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Citic Telecom International Holdings' ROA % compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Citic Telecom International Holdings ranks #118 out of 368 companies for ROA %. This puts Citic Telecom International Holdings in the upper half of its industry. The industry median ROA % is 2.79. Citic Telecom International Holdings' value of 5.40% is 93.9% above this benchmark. Historically, Citic Telecom International Holdings' own ROA % has ranged from 4.79 to 6.93 over the past decade. While the company's 10-year median is 5.43 vs. the industry median of 2.79, Citic Telecom International Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Telecommunication Services company?
The median ROA % among Telecommunication Services companies is 2.79, based on 368 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Citic Telecom International Holdings's current ROA % of 5.40% is 93.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Citic Telecom International Holdings and its competitors. For the Telecommunication Services industry, the median ROA % is 2.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Citic Telecom International Holdings's current ROA % is 5.40%, which is near median its own 10-year median of 5.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Citic Telecom International Holdings stock overvalued right now?
Based on GuruFocus' analysis, Citic Telecom International Holdings (STU:B7O) is currently considered Fairly Valued. The stock's GF Value™ is €0.26, compared to a current price of €0.27 — trading 4.6% above its estimated fair value. The current ROA % is 5.40%, which is near median its 10-year median of 5.43 and 93.9% above the Telecommunication Services industry median of 2.79. Citic Telecom International Holdings' overall GF Score™ is 56/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Citic Telecom International Holdings (STU:B7O), the current ROA % is 5.40% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Citic Telecom International Holdings (STU:B7O) Overvalued in 2026?
Based on GuruFocus' analysis, Citic Telecom International Holdings stock appears to be overvalued.
The current stock price of €0.27 is trading 4.6% above its estimated GF Value™ of €0.26.
GuruFocus considers Citic Telecom International Holdings to be Fairly Valued.
Key valuation signals for STU:B7O:
ROA %: 5.40% (near median its 10-year median of 5.43)
GF Value™: €0.26 vs. price of €0.27 (4.6% above fair value)
Industry Position: 93.9% above the Telecommunication Services median (#118 of 368)
No single metric tells the full story. See the STU:B7O stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Citic Telecom International Holdings Ltd is a telecommunications company that generates revenue from mobile phones, Internet services, international telecommunications, enterprise solutions, fixed-line services, and the sale of equipment and mobile handsets. Enterprise services involve delivering information and communication technologies to businesses. This division plays a important role in the overall revenue of the company. The company operates in Hong Kong, Macau, Singapore, and other regions. It earns the majority of its revenue in Macau and owns telecommunications infrastructure.
56GF Score
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